Information from the industry indicates that on September 29th, several fund managers including E Fund, Huaxia Fund, Fullgoal Fund, Southern Fund, Wanjia Fund, China Merchants Fund, Huitianfu Fund, and Caitong Securities Asset Management submitted applications to the China Securities Regulatory Commission (CSRC) for the issuance of the CSI Dividend Growth ETF product.
It is reported that these are among the first ETF products on the market to track the CSI Dividend Growth Index, marking another expansion of dividend strategy index products.
Anchoring "Sustainable Growth in Dividends"
Usually, dividend-style indices are closer to value indices, but this time, the dividend growth ETF is different.
It is reported that this batch of the ETF tracked CSI Dividend Growth Index is positioned for the A-share dividend growth strategy, mainly reflecting the overall performance of listed companies with continuous dividend growth. In selecting constituents for this index, emphasis is placed on companies with a history of good dividend growth and high potential for future dividend increases. The index takes into account both the certainty of dividends and the potential for future growth, distinguishing it from traditional dividend indices that focus solely on screening companies with high dividend yields.
Industry insiders point out that the constituent stocks of the CSI Dividend Growth Index are mainly companies that fit the characteristics of China's economic development, possess solid operational fundamentals, stable cash flow generation capabilities, and mature profit models. They are able to meet the needs of both investors who value dividends and those who pursue growth.
Dividend demand continues to heat up
In recent years, the dividend distribution of A-share listed companies has steadily increased, and investors have received better dividend returns than in the past, driving the market to develop in a new, improved, and positive direction.
Against the backdrop of the continuous popularization of the three concepts of "long-term investment, value investment, and rational investment," high-quality assets with high dividends and sustainable dividend characteristics are increasingly favored by various investors. The demand for dividend-oriented assets from medium- to long-term funds and patient capital has significantly increased.
Data shows that currently, the number of dividend-related ETF products in the Shanghai market has reached 55, with a total scale of 181.7 billion yuan, accounting for over 80% of the domestic market.
Conform to the major investment trend
Industry insiders analyze that the launch of the CSI Dividend Growth ETF product has multiple positive implications. For investors, it transforms the continuously strengthening dividend-paying capabilities of listed companies into stable returns that can be sustainably shared by investors, providing innovative dividend strategy tools.
On the market side, this will help attract more medium- and long-term funds as well as patient capital, encouraging these investors to increase their equity allocation and enhancing the inherent stability of the capital market.
On the industry side, balancing the two needs of investors to pursue growth and obtain cash returns, product innovation is used to draw market attention to investor returns.
Currently, the aforementioned ETF products are all in the approval and application phase, and the subsequent release schedule is subject to further clarification based on the review process.
